Suppose that a package courier service promises to deliver to customers at 10:00 am on the morning after pickup. More than 2 hours from the promised delivery time is unacceptable to customers. Due to compensation that the company gives customers for not meeting the promised delivery target, the penalty is $13. How much variation should be allowed in the delivery service? Given : Op Cost = 21 -1.7D and Total Cost = 21 - 1.7D + 3.25D^2

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Exclusive Distribution

“Exclusive Distribution is the one where in a manufacturer or supplier authorizes one distributor to carry out the distribution work within a definite region.”